19 Dec Are gift taxes due on deeded home?
Q. I have a question on taxes due to deed changes on a home. The original deed was with the father and “Daughter A.” In March 2017, it was “Daughter A” only. The father didn’t die, so would this mean a gift tax return? Now the family would like to add another sibling to the deed. Would this mean gift taxes for “Daughter A”?
A. Lots of changes for this home.
You’re correct in your assumption that the father needs to file a gift tax return, said Steven Holt, an attorney and chair of the taxation, trusts and estates department at Mandelbaum Salsburg in Roseland.
Whether he needs to pay gift tax depends on the value of the gift and his lifetime exemption.
“He can make gifts of up to his exemption amount of $5.49 million — less any prior gifts that used up exemption — without the incurrence of the tax,” Holt said.
Adding another sibling to the deed would mean a gift was made. This also needs to be reported, Holt said, but there will be no tax if the value is within her unused $5.49 million exemption amount.
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This post was first published in December 2017.NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.